RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of August 28, 2001 No. 369

About approval of the Regulations on application of corrective actions by the National Bank of Ukraine for violations of the bank law

List of amending documents

According to requirements of the Laws of Ukraine "About the National Bank of Ukraine" and "About banks and banking activity" and for the purpose of enhancement of system of corrective actions for violation of the bank law Board of the National Bank of Ukraine DECIDES:

1. Approve Regulations on application of corrective actions by the National Bank of Ukraine for violation of the bank law it (is applied).

2. Declare invalid Regulations on application by the National Bank of Ukraine to banks and other financial credit institutes of corrective actions for the violation of the bank law approved by the resolution of Board of the National Bank of Ukraine of 26.05.2000 N 215 and registered in the Ministry of Justice of Ukraine 03.07.2000 for N 382/4603 (with changes), except Chapter 7, which is recognized the invalid ambassador of commissioning of Chapter 7 of the Section III of Provisions on application of corrective actions by the National Bank of Ukraine for violation of the bank law approved by this resolution.

3. This resolution becomes effective in 10 days after state registration in the Ministry of Justice of Ukraine, except Chapter 7 of the Section III of Provisions on application of corrective actions by the National Bank of Ukraine for violation of the bank law which becomes effective from 01.01.2002.

4. To general department of banking supervision (P.V.Andrushchenko) till 01.11.2001 to develop regulations of application of corrective actions by the National Bank of Ukraine.

5. Determine that corrective actions on banks and persons who can be object of check of the National Bank of Ukraine are applied by Board of the National Bank of Ukraine, the Commission of the National Bank of Ukraine concerning supervision and regulation of activities of banks, the vice-chairman of the National Bank of Ukraine on representation and the conclusions of structural divisions of central office and territorial administrations, and also chiefs of territorial administrations of the National Bank of Ukraine or their deputies, the commissions on questions of supervision and regulation of activities of banks under territorial administrations of the National Bank of Ukraine according to the powers conferred to them.

In case of imposing of penalties on banks at the initiative of other structural divisions of National Bank (except banking supervision) including which are not falling under operation of article 73 of the Law of Ukraine "About banks and banking activity" which application according to the current legislation in certain cases is obligatory, but essential deterioration in financial position of bank, Board of National Bank or the Commission of National Bank in individual procedure can entail and under the separate resolution (the separate decision) can resolve gradual payment of penalty by bank during certain period.

6. Bring in Chapter 7 of the Regulations on application by the National Bank of Ukraine to banks and other financial credit institutes of corrective actions for violation of the bank law approved by the resolution of Board of the National Bank of Ukraine of 26.05.2000 N 215 and registered in the Ministry of Justice of Ukraine 03.07.2000 for N 382/4603 (with changes), such changes:

6.1. The paragraph one of Item 7.1 to state in such edition:

"The National Bank has the right to impose on banks penalties in case of assumption them violations according to article 73 of the Law of Ukraine "About banks and banking activity", in particular such".

6.2. In paragraph one of subitem 7.6.2 of Item 7.6 "arbitral" to exclude the word.

6.3. State Item 7.9 in such edition:

"7.9. In case of non-use of penalties for the purpose of ensuring correction of situation or prevention of further loss by bank of the assets the National Bank shall apply other adequate corrective actions according to article 73 of the Law of Ukraine "About banks and banking activity" ".

7. To general department of banking supervision (P.V.Andrushchenko) to bring this resolution after state registration to permission of independent structural divisions of the National Bank of Ukraine, territorial administrations, and also banks for management and use in work.

8. To impose control of execution of this resolution on the vice-chairman V. L. Krotyuk, General department of banking supervision (P.V.Andrushchenko), Department of monetary policy (N. I. Grebenik) Department of cash currency circulation (N. V. Dorofeyev), Department of payment systems (V. L. Kravets), Department of currency exchange control and licensing (S. O. Bragin), Operation management (V. D. Shchutsky) and chiefs of territorial administrations of the National Bank of Ukraine.

 

N369 is approved by the Resolution of Board of the National Bank of Ukraine of August 28, 2001

Regulations on application of corrective actions by the National Bank of Ukraine for violation of the bank law

Section I. General provisions

Chapter 1. Corrective actions which are applied by National Bank

1.1. The regulations on application of corrective actions by the National Bank of Ukraine for violation of the bank law (further the Provision) are developed based on the Laws of Ukraine "About banks and banking activity" (further - the Law on banks), "About the National Bank of Ukraine", "About economic societies", "About joint-stock companies" other legal acts of Ukraine and regulatory legal acts of the National Bank of Ukraine (further - National Bank). The provision determines the bases and procedure for application by National Bank to the banks, branches of foreign banks and other persons which are object of check of National Bank (1), corrective actions for violation of the bank law.

--------------

(1) Other persons which are object of check of National Bank are determined in article 72 of the Law on banks. The corrective actions determined in subitems "an" and "z" of Item 1.2 of this Section can be applied to other persons which are object of check of National Bank according to the Law on banks.

In case of violation by banks, branches of foreign banks or other persons which are object of check of National Bank according to the Law on banks (further - banks), to requirements of the bank law and regulatory legal acts of National Bank or implementation of the risk transactions menacing to interests of investors or other creditors of bank by them, the National Bank applies corrective actions to adequately allowed violations according to the procedure, established by this Provision.

In case of assumption branch of foreign bank of violations the National Bank can make to foreign bank demands concerning their elimination, report about the allowed violation to supervisory authority of foreign state both before application of adequate corrective actions, and along with their application.

Terms which are used in this Provision are used in such values:

assets, obligations - according to national provisions (standards) of financial accounting;

bank which is reorganized, - bank which during action of temporary administration owing to reorganization fully or partially transfers the property, means, the rights and obligations to bank legal successor;

bank legal successor - bank which owing to reorganization fully or partially accepts property, means, the rights and obligations of bank which is reorganized;

conflict of interest - any kind of the relations which is not equitable to interests of bank or can interfere with objective accomplishment of obligations of the responsible person;

salvage value, similar property, market value - according to national provisions (standards) of assessment of property;

estimated value - the cost (market, liquidating) determined by results of independent assessment by subject of estimative activities for the contract with bank in which the temporary administration is entered or which is liquidated;

transfer of assets/obligations - transfer of assets/obligations from balance of one bank on balance of other bank based on the agreement on transfer of assets/obligations;

troubled assets - the assets which are negatively classified according to regulatory legal acts of National Bank;

asset sale - transfer of assets based on the sale and purchase agreement of assets;

the public conflict in management of bank - lack of consent and availability of contradictions between governing bodies of bank which negatively influence effective management of bank and threaten interests of creditors (investors) of bank and of which the unrestricted group of people knew;

financially stable bank - the bank observing in the activities the economic standard rates established by regulatory legal acts of National Bank and the having sufficient amount of the capital for the further development.

Other terms which are used in this Provision are used in values according to their determinations in the Law on banks and other legal acts of Ukraine and regulatory legal acts of National Bank.

1.2. The National Bank applies to banks of corrective action which treat:

a) the written prevention concerning the termination of violation and application of necessary measures for correction of situation, reduction of unjustified expenses of bank, restriction of unfairly high percentage payments for the raised funds, reduction or alienation of inefficient investments;

b) convocation of general meeting of participants, the supervisory board of bank, board (board of directors) of bank for adoption of the program of financial improvement or the plan of reorganization of bank;

c) the conclusion of the written agreement with bank on which the bank or person determined by the agreement shall take measures for elimination of violations, improvement of financial position of bank and so forth;

d) the order concerning stop of dividend payout or capital allocation in any other form;

) the order concerning establishment for bank of the raised economic standard rates;

e) the order concerning increase in reserves on covering of possible loan losses and to other assets.

e) the order concerning restriction, stop or the termination of implementation of separate types of the transactions performed by bank with high risk level;

s) the order is relative prohibitions to grant blank credits;

g) the order concerning imposing of penalties on:

heads of banks in the amount up to hundred tax-free minima of the income of citizens,

banks in the amount of no more than one percent from the amount of the registered authorized fund;

h) the order rather temporary, before elimination of violation, prohibition to the owner of essential participation in bank to use voting power of the acquired shares (particles/share) in case of gross or systematic violation by it of requirements of the Law on banks or regulatory legal acts of National Bank;

i) the order rather temporary, before elimination of violation, discharge of the official of bank from position in case of gross or systematic violation by this person of requirements of the Law on banks or regulatory legal acts of National Bank;

) order of rather forced reorganization of bank;

x) the order concerning appointment of temporary administration;

й) withdrawal of the banking license and initiation of liquidation procedure of bank.

Are not applied to branches of foreign banks of the requirement of subitems "b", "g", "z", "i".

To branches of foreign banks the National Bank reports about application of corrective actions to foreign bank and supervisory authority of foreign state.

The National Bank sends to territorial administration on the location of branch of foreign bank of the copy of the made decisions on application of corrective actions to this branch.

1.3. Corrective actions are applied by National Bank on the basis:

results inspection (planned and unplanned) checks of activities of banks or their branches;

results (materials) of checks of banks and/or permanent supervision concerning financial monitoring;

analysis results of observance by banks of the requirement of the bank law with use of the statistical reporting, monthly and daily balances and so forth;

results of checks of activities of banks by the auditing organizations authorized according to the current legislation on their implementation.

offers of Fund of guaranteeing household deposits (далееФонд) in case of violation of the provisions of the law of Ukraine by bank "About Fund of guaranteeing household deposits;

results of the checks of observance by banks of the foreign exchange legislation performed by authorized employees of National Bank who contain the found violations of the bank law, regulatory legal acts of National Bank or implementation of the risk transactions menacing to interests of investors or other creditors of bank.

When implementing supervision of the organizations conducting banking activity in other states, the National Bank cooperates with relevant organs of these states. The message sent by relevant organs of other states can be used only with such purpose:

for verification of the license of organization for the right of conducting activities;

for check of the right to implementation of banking activity.

1.4. In case of consideration of questions by National Bank concerning application to specific bank of corrective actions for provision of explanations the chairman of the board (board of directors) or the chairman of the supervisory board of bank can be invited. If the question of appointment of the temporary administrator or withdrawal of the license of bank is considered, then these persons for provision of explanations are not invited. The invitation is sent in writing (or by e-mail) not earlier than three days before date of meeting. The business meeting in the form of meeting is drawn up by the protocol to which written explanations of the invited person behind its signature are applied.

1.5. The corrective actions applied by National Bank to banks shall be adequate to specific violations which were allowed by them.

The choice of the adequate corrective actions applied to banks according to the bank law and this Provision shall be performed taking into account:

nature of the violations allowed by bank;

the reasons which caused emergence of the revealed violations;

general financial condition of bank;

the size of possible negative effects for creditors and investors.

1.6. In case of accomplishment by bank of undertaken obligations and improvement of indicators of activities of bank the National Bank can cancel ahead of schedule applied corrective actions for certain term (partially or absolutely). The decision on cancellation of the applied corrective actions shall be made by the Commission of National Bank (The commission of National Bank under territorial administration) either Board of National Bank, or person who made the decision on application of corrective action.

1.7. Decisions on application of corrective actions can be appealed judicially.

Before adoption of the relevant decision by court action of the applied corrective actions does not stop.

Chapter 2. Specific mode of control of activities of banks

2.1. For input of daily control of activities of banks and accomplishment of requirements of National Bank by them concerning elimination of the allowed violations the specific mode of control of their activities can be set (further - specific mode of control).

The National Bank applies the procedure of specific mode of control which provides:

introduction of carrying out all initial payments from bank to electronic payment system of the National Bank of Ukraine (further - SEP) through executives in charge of division of banking supervision of central office or territorial administration of National Bank with use of the special software of UARM of the legal entity (further - ARM-Yu);

restrictions concerning activities of bank by appointment of the curator of bank.

2.2. The specific mode of control is the additional instrument of banking supervision which is used, as a rule, along with corrective actions, the stipulated in Clause 73 Laws on banks, in case of availability at least of one of such signs:

failure to carry out by heads of bank of requirements of National Bank concerning elimination of the revealed violations;

discharge of heads of banks from position;

identification by results of permanent supervision or inspection check of the facts of carrying out transactions by bank with high risk level, violations of the bank law, and also receipt of the income with violation of requirements of the legislation of Ukraine even if these violations did not entail deterioration in financial condition of bank;

emergence of real threat of failure to carry out by bank of the obligations to clients and creditors;

the needs for the strengthened control of activities of bank for the purpose of avoidance of possibility of failure to carry out by bank of the obligations to clients and creditors until adoption by National Bank of the decision on appointment of temporary administration or about withdrawal of the license and initiation of liquidation procedure.

2.3. The decision on establishment of specific mode of control which provides introduction of carrying out all initial payments from bank to SEP through executives in charge of division of banking supervision of central office or territorial administration of National Bank with use of ARM-Yu is accepted by the Commission of National Bank concerning supervision and regulation of activities of banks (daleekomissiya of National Bank) or the vice-chairman of National Bank (the curator of service of banking supervision), or the Commission on questions of supervision and regulation of activities of banks under territorial administration of National Bank (further - the Commission of National Bank under territorial administration).

The decision on restriction concerning activities of bank by appointment of the curator of bank is made by Board of National Bank on representation of the chief executive of Directorate on bank regulation and supervision. The term of office of the curator of bank cannot exceed one year from the date of its appointment.

In the same procedure the decision on prolongation of action of specific mode of control is made.

2.4. Carrying out all initial payments from bank to SEP through executives in charge of division of banking supervision of central office or territorial administration of National Bank with use of ARM-Yu is performed in day of acceptance (obtaining) of such decision according to the regulatory legal act National Bank concerning interbank money transfer in Ukraine.

If the bank has branches for which correspondent accounts in territorial administrations of National Bank are opened, then the specific mode of control is at the same time set also for all branches.

2.5. The curator of bank is appointed from among the employees of National Bank having the higher economic or legal education, the work experience connected with banking operations, faultless goodwill, managerial ability.

The employee of National Bank involved to accomplishment of powers of the curator of bank is appointed by the order of National Bank with preserving behind it place of employment, the salary, awards and other payments provided by wages system on principle place of employment for accomplishment of functions of the curator of bank.

2.6. The curator of bank which at the request of management of National Bank exercises the strengthened control of activities of bank, staying directly in bank, it shall be provided separate with accommodation, equipped with necessary furniture, the computer equipment with access to the corresponding software and hardware complexes for viewing in the mode of the current time of all transactions of bank and its clients, to have opportunity to use the phone/fax and means of the multiplying equipment.

2.7. The National Bank has the right to establish such special requirements to calculations of bank in which the curator is appointed:

prohibit use for calculations direct correspondent accounts;

transfer bank to model of servicing of the consolidated correspondent account in SEP which gives to bank opportunity to make initial payments on behalf of branches or through intra bank interfilial payment system;

establish procedure for accomplishment by bank and its branches of initial payments taking into account availability of means on correspondent account of bank and content of payments.

2.8. The following powers are assigned to the curator of bank:

a) exercise constant control behind carrying out transactions by bank, including establish procedure for accomplishment by bank and its branches of initial payments taking into account availability of means on correspondent account and contents of payments, to choose methods of the organization of management of priority of initial payments (using means of system of automation of bank, intra bank interfilial payment system of bank, the automated workplace of "automated workplace of the curator of bank" intended for management of initial payments of bank that are sent to SEP), to obtain information and to study documents concerning carrying out by bank transactions and determination of risk level on which it can be exposed;

b) initiate prohibition on use for calculations direct correspondent accounts;

c) initiate transfer of bank into model of servicing of the consolidated correspondent account in SEP which gives to bank opportunity to make initial payments on behalf of branches or through intra bank interfilial payment system;

d) initiate holding meetings with management of bank for receipt of explanations and information concerning acceptance of measures by bank concerning elimination of violations and shortcomings and ensuring its financial stability;

e) it is obligatory to be present:

at general shareholder meeting, at meetings of the supervisory board and bank board;

on committee meetings (without fail credit committee, committee on questions of asset-liability management, tariff committee);

at management meetings, including concerning restructuring of external obligations of bank, and other structural divisions of bank, including divisions of internal control and audit of bank;

at negotiations with investors of bank concerning sale or reorganization of bank, ways of improvement of bank at the expense of means of participants;

e) exercise control of timely accomplishment by bank of requirements (actions) shown (applied) by National Bank to bank by results of its activities including of accomplishment of the program of financial improvement by bank (the plan of reorganization) and/or obligations to National Bank assumed in the written agreement;

) to inform management of service of banking supervision concerning analysis results of financial condition of bank, and in case of negative tendencies and identification of problems in its activities which can pose threat of loss of liquidity and solvency and to interests of creditors and investors, quickly to prepare reasonable offers of rather further supervising actions behind this bank;

g) perform the functions connected with control of use of the means received from National Bank for ensuring its liquidity;

h) approve solutions of management of bank and documents (agreements) connected with movement of means;

s) address to National Bank with the petition for consideration of question concerning application of adequate measure of impact according to requirements of article 73 of the Law on banks to the officials or persons acting according to their order if they interfere with implementation of functions of the curator of bank, in particular create conditions under which the curator cannot perform fully or partially the powers assigned to it by National Bank.

i) take out out of limits of bank of the copy of documents which can testify to the facts of violation by bank of the bank law, including regulatory legal acts of National Bank.

2.9. Within seven days from the date of its appointment the curator of bank shall constitute together with management of bank comprehensive plan concerning acceptance of the following measures:

repayments of overdue debt of bank;

stops of outflow and stimulation of return to banks/building-ups of deposits of physical, legal entities of bank;

return to bank of cash weight, the added unpaid interests according to credit agreements;

increases in resource base of bank due to return of means of clients;

reductions of system of awarding of employees of bank in compliance with the assigned tasks.

2.10. For the purpose of effective implementation of the tasks assigned to it the curator of bank in the presence of the reasonable bases has the right to necessary information from structural divisions of National Bank and attraction to work in coordination with management of National Bank of employees of National Bank on certain questions.

2.11. The bank upon the demand of the curator of bank shall provide information concerning its activities, including the explanation concerning carrying out separate transactions by it. Information in the form of the relevant documents and their copies (including made by method of scanning or creation of photocopies) or other carriers of the relevant information which can testify to the facts of violation by bank of the bank law, including regulatory legal acts of National Bank shall be certified by bank properly.

Section II. Application of the written prevention and the conclusion of the written agreement with bank

Chapter 1. Written prevention

1.1. In case of need promotions to bank of the requirement concerning elimination of violation of the bank law, regulatory legal acts of National Bank and/or taking measures to non-admission of such violations in further activities the National Bank applies the written prevention to bank.

1.2. In written caution the National Bank states to bank the concern about provision of its cases, specifies the allowed violations of the bank law, regulatory legal acts of National Bank or shortcomings of work and as necessary specific measures which he should use in certain terms for the purpose of their elimination or non-admission further, in particular relatively:

a) elimination of specific violations or shortcomings of activities of bank which directly did not affect its financial position yet, but in the future can lead to its deterioration and threat to interests of investors and creditors of bank;

b) elimination of violations by bank of economic standard rates;

c) reduction of unjustified expenses of bank;

d) restrictions of unfairly high percentage payments for the raised funds;

) applications of measures concerning reduction or alienation inefficient (low-profitable or unprofitable) investments;

e) corrections (adjustment) of the financial reporting of bank by results of inspection (planned and unplanned) checks which are performed by National Bank;

e) ensuring carrying out obligatory audit inspection of bank and provision of the conclusions of independent auditing organizations (auditors) about results of activities of bank according to article 8 of the Law of Ukraine "About auditor activities";

s) non-admissions of further violation of the standard rate of obligatory reservation within one calendar year;

g) violations of requirements of the Law on banks in part to prevention and counteraction of legalization (washing) of income gained in the criminal way;

Подункт з)  No. 204 is excluded according to the Resolution of Board of the National Bank of Ukraine of 22.06.2011

h) other violations.

If the bank violates the standard rate of instant liquidity and its value is in limits of 10 - 15 percent, then the National Bank sends it the written prevention with the requirement to provide forecast calculations of sources of receipts and use of means the next 90 days, to develop measures of increase in liquidity to normative level. Until increase in indicator of instant liquidity to normative level this information is updated by bank monthly and goes to territorial administration of National Bank till the 10th following reporting.

The written caution can be applied in case of violation of the Law of Ukraine by bank "About Fund of guaranteeing household deposits" (depending on nature and type of violation).

1.3. The written prevention is applied by independent structural divisions of central office of National Bank which shall control according to the functions assigned to them activities of banks, and also territorial administrations of National Bank. The relevant structural division of banking supervision of National Bank for his knowledge concerning activities of bank in general shall be informed on application of National Bank by other structural divisions (except banking supervision) the written prevention.

The written prevention is signed by the vice-chairman of National Bank, the head (his deputy) of independent structural division of central office or the head (his deputy) of territorial administration of National Bank.

The written caution is constituted on the form of National Bank or territorial administration of National Bank in which its name "Caution" is specified, and addressed to bank with indication of the complete bank name. The written caution is sent to bank on feldsvyaz or agrees to the requirements established by National Bank concerning transfer of documents with confidentiality signature stamp the registered mail with the message on delivery.

1.4. If the written prevention is constituted based on materials of inspection check (planned or unplanned), then it can be sent to bank together with the report on inspection check.

The written prevention can be also sent to bank during inspection check if the territorial administration or the relevant structural division of banking supervision of National Bank elicits the facts requiring urgent application of such measure.

1.5. The bank shall within five working days since receipt of the written prevention submit to National Bank the answer with indication of the term during which he shall solve the found problems and eliminate violations.

1.6. Control over the implementation by bank of the requirements containing in written caution exercises the relevant territorial administration of National Bank (the relevant structural division of banking supervision of central office).

In case of failure to carry out of requirements by bank concerning elimination at least of one violation specified in the written prevention at the scheduled time the corresponding territorial administration of National Bank till 5 working days shall give to the relevant structural division of banking supervision of central office of the offer concerning application of other (more tough) corrective actions.

1.7. If the bank allowed violation which elimination requires more than two months, then the written prevention is not applied to bank. In this case other corrective action, in particular the conclusion of the written agreement with bank shall be applied to bank.

Chapter 2. The conclusion of the written agreement with bank

2.1. The written agreement as corrective action can consist with the bank which allowed violations which influence its financial position or performs the transactions with high risk level menacing to interests of investors or other creditors of bank or allowed violation of value of limit of common long foreign exchange position of bank (L13-1)/limit of common short foreign exchange position of bank (L13-2) five and more times of podryadpra condition of provision of the acceptable actions plan by it for elimination of the found problems.

2.2. In the written agreement the bank in writing recognizes the shortcomings of work and the allowed violations and gives the list of reasonable measures which the bank shall accept for elimination of violations, their prevention further, improvements of financial position and so forth with indication of terms of their accomplishment.

If the bank (except branch of foreign bank) at least once violated one of the standard rates of the capital established by National Bank (namely: the standard rate of the minimum level of the regulatory capital of bank (N 1) or the standard rate of adequacy of the regulatory capital (N 2), or the standard rate (coefficient) of ratio of the regulatory capital to total assets, it shall submit within a month to National Bank the actions plan concerning procedure and terms of recovery of level of the regulatory capital of bank (further - the program of capitalization) for the conclusion of the written agreement about its accomplishment.

If the bank allowed violation of value of limit of common long foreign exchange position of bank (L13-1)/limit of common short foreign exchange position of bank (L13-2) five and more time in a row, then it shall submit within a week to National Bank the actions plan concerning procedure and terms of elimination of the allowed violation for the conclusion of the written agreement about its accomplishment.

The branches of foreign banks violating the standard rate of adequacy of the regulatory capital (N 2) or the standard rate (coefficient) of ratio of the regulatory capital to total assets (N 3), provide to National Bank the program of capitalization according to the procedure, established for banks of Ukraine.

Terms of accomplishment of obligations are established individually taking into account nature of problems and the allowed violations, and also assessment and the conclusion of the relevant division of General department of banking supervision (territorial administration) of National Bank concerning reality of the terms established by bank for accomplishment of the obligations without threat of deterioration in its financial position and in case of violation of value of limit of common long foreign exchange position of bank (L13-1)/limit of common short foreign exchange position of bank (L13-2) also taking into account offers of General department of monetary policy.

The written agreement is constituted in duplicate and signed from bank name by the chairman of the board of bank (the head of branch of foreign bank) and/or other representative according to requirements of the current legislation person, makes sure seal of bank.

If obligations which are provided by bank in the draft agreement according to the current legislation be approved/affirm board, the supervisory board or general meeting, then the relevant protocol (the statement from the protocol) shall be applied to the agreement.

2.3. Obligations assumed by bank in the written agreement shall include the specific measures directed to improvement of its financial position or elimination of the revealed violations, and also preventive measures concerning non-admission of violations in the future, in particular it:

creation and accomplishment of the business plan or program of capitalization of bank (according to appendix 2 to this Provision), or programs of financial improvement (according to appendix 1 to this Provision);

accomplishment of the actions plan, aimed at providing profitable activities;

development and deployment of provisions concerning improvement of practice of crediting;

obligations concerning carrying out external audit of financial position of bank;

decision making about temporary restriction on increase in assets of bank;

decision making about restriction of loan amount which are provided to the connected persons (insiders) of bank;

decision making of rather temporary decrease in the size of deposit interests which are attracted;

temporary termination of dividend payout;

decision making about restriction of the size of the amount which the bank can pay to the workers in the form of the salary and awards;

reorganization of bank.

improvement of quality of assets, including by investment of capital in risk free assets (government securities with their further blocking on accounts in securities of bank on unconditional transaction in depositaries of government securities of National Bank and deposit certificates of National Bank on condition of their placement by National Bank) in the amount of:

50 percent from the estimated total amount of reserves under negatively classified assets if the specific weight of negatively classified assets makes 30 percent and more from the total amount of credit portfolio, receivables, securities portfolio and means which contain on the correspondent accounts opened in other banks;

40 percent from the estimated total amount of reserves under negatively classified assets if the specific weight of negatively classified assets makes from 20 to 30 percent from the total amount of credit portfolio, receivables, securities portfolio and means which contain on the correspondent accounts opened in other banks;

30 percent from the estimated total amount of reserves under negatively classified assets if the specific weight of negatively classified assets makes from 10 to 20 percent from the total amount of credit portfolio, receivables, securities portfolio and means which contain on the correspondent accounts opened in other banks.

The written agreement of rather temporary termination of dividend payout, reorganization of bank with branch of foreign bank does not consist.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info